Fluor (NYSE:FLR) designs, builds and maintains many of the world's most challenging and complex projects with the objective to execute and maintain capital projects on schedule and within budget. Through its global network of offices on six continents, the company provides comprehensive capabilities and world-class expertise in engineering, procurement, construction, commissioning, operations, maintenance and project management.www.fluor.com

100TH ANNIVERSARYFounded in 1912, Fluor is celebrating its 100th anniversary during 2012. The company was started by John Simon Fluor Sr. with a modest investment of $100. Since those humble beginnings, the company has grown into one of the largest engineering & construction companies in the world with sales today topping $23 billion.

Over the decades, Fluor has expanded its expertise across industries and around the world. Fluor is active in more than 25 industries on six continents. From working on the Buddha Tower in the 1920's to the trans-Alaska Pipeline in the 1970's to the largest polysilicon facility in the world in 2008, Fluor has been an innovative market leader.

SECOND QUARTER RESULTSFluor reported second quarter revenues increased 18% over the prior year period to $7.1 billion with operating income up 3% to $288 million.

During the quarter, Fluor achieved double-digit profit growth in four segments, with only the Power segment showing a decline as weak demand for new power generation projects and costs associated with small nuclear reactor technology investments through NuScale has left this unit with a current profit brown out. New contract awards for the quarter of $7.3 billion increased Fluor's backlog of contract work to a record $43 billion.

The strongest performance for the company in the quarter was in the Oil and Gas segment with revenues growing 16% over the prior year with $5.0 billion in new awards. Operating profit for the Oil and Gas segment increased 22% over the second quarter of 2011 to $84 million, and management is optimistic about the opportunities for new contract awards in this area for the remainder of 2012.

BUILDING A CASH STASHOperating cash flow declined 80% during the first half of 2012 due to timing of payments on work in progress and customer advances. Cash flow is expected to return to normal for the year as the timing differences reverse themselves through the normal business cycle. Despite the slowdown in cash flow, Fluor's cash position remained strong with over $2.5 billion in cash and marketable securities on the 6/30/12 balance sheet.

During the first half of 2012, Fluor repurchased $132.9 million of stock and paid dividends of $48.6 million. Earlier this year, Fluor increased its dividend a robust 28% to an annual rate of $.64 per share.

RAISED EARNINGS OUTLOOKBased on strong financial results in the first half, Fluor increased earnings guidance for the full year to a range of $3.50 to $3.80 per share. Fluor appears well positioned to achieve these results in 2012 and to continue to power forward into the future with a strong backlog of work and a pipeline of new contract opportunities in all of its operating segments. Long-term investors may want to join us as we continue to build a position in Fluor, a high-quality, cash-rich company with a 100-year history of constructing successful financial results. Buy.

Disclosure: I am long FLR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.